As a child, I was an expatriate living in the
island country of Singapore. The urban city that I had grown to adopt as my own
was on the move with taxis, rickshaws, and bicycles. Incense filled the
streets. People attempted to shield themselves from the sun, heat, and humidity
by donning umbrellas and eating ice cream wrapped in bread. I didnt know then
that this vibrant environment was an increasing economic, technical, and cultural
powerhouse that dominated the Asia Pacific. All I knew was that I was living
under a one-party democracy with a strict legal system that prohibited
chewing gum, employed caning as a means of punishment, and sentenced drug
traffickers to immediate death by public hanging. Since returning to the United States in 2000 and beginning to study economics at Boston College, I have become even more
interested in the complicated nation of Singapore as I seek to understand its
ascendancy.

Singapores first prime
minister, Lee Kuan Yew, has remained a leading political figure in South-East Asia since 1959. As the co-founder of Singapores leading political party, the
Peoples Action Party, he created what some would consider a harsh, but others
a winning, set of laws. By prohibiting littering, spitting on walkways, and
failure to flush public toilets, Yew helped Singapore uphold a standard of
cleanliness. The Peoples Action Party also imposes other harsh lawsas the
red, bold letters on ones airport entry card indicate, the penalty for drug
trafficking is death (Jacobson). Yew also organized the Singapore Model,
which internationalized the country by calling for foreign investment in
infrastructure and establishing English as the main language (Jacobson).

Henry Cheng, a freshman at BC from Singapore, observed a social contract between citizens and the government while living in
the country. The government is corrupt-free and promises you the opportunity
to get rich. If you dont mess with the government, they will provide for
you. For example, Singapore has very low taxes and provides public housing
with no charge on interest for over 85% of its citizens (Cheng). According to
the Central Intelligence Agency, Singapore also provides work for 97% of its
citizens, giving it one of the lowest unemployment rates in the world.

Lately, Singapore has made headlines for its
projected economic growth in 2010. I recently had the opportunity to sit down
with my Microeconomics professor, Richard Tresch, to discuss issues related to
economic growth. He informed me that on average, a well-developed economy grows
at a rate of 4% per year. Singapores economy is an exception to this
statistic, with an estimated growth rate of as much as 15%, making it the
fastest growing economy in the world today. According to a recent New York
Times article, Bettina Wassener argues that this growth rate is four times
the estimated growth rate of the United States economy.

Typically, economic growth results from investment
in physical and human capital. Singapores 15% projected growth is due in part
to its educational system that demands excellence from its students, as
evidenced by Singapores 92.5% literacy rate (United States). Investment in
physical capital has occurred in Singapore as demand for manufactured exports,
particularly biomedical products and electronics, has risen. Having become a
center of production and research for pharmaceuticals, Singapore has expanded its manufacturing sector by over 46% in the past year (Wassener).

The Singaporean government has also put large
expenditures into infrastructure to attract more tourists. Typically, Singapore has not been a destination in and of itself, and the islands airport has been
simply a common layover for many travelers. In an attempt to attract these
tourists and become a one-way destination, Singapore has opened two new
casinos, owned by Genting Singapore PLC and Las Vegas Sands Corp, and the first
Universal Studios in South-East Asia. In addition, Singapore has extended their
transit system to Sentosa Island, an island off the coast that is known for its
beaches and amusement parks (Hong). Beach clubs and malls contain luxuries for
rich tourists. In an upscale mall, Cheng said it was not uncommon to see window
displays of 30 karat flawless diamonds and a 16 karat green diamonds with
price tags of 70 million and 65 million.

It is expected that Singapore will continue its
successes in the years ahead. Recently, Singapore has been attempting to become
the private banking hub of the world. Many investors put their money in Singapore because it is the richest country in South-East Asia with a stable currency (Cheng).
According to current Economist Intelligence Unit projections, the Peoples
Action Party will remain a powerful group and will continue to pass policies to
promote healthcare, housing, and social harmony. The services sector is
expected to remain in surplus due to Singapores increased tourism and demand
for financial services. And though the government is expecting a deficit on the
basic budget due to the projection of increased public spending, it will not be
forced to raise taxes (Singapore: Country Outlook).

While living in Singapore, I could not think of a
better place to visit to experience a culture so alive with a mix of its own
heritage and outside influences.. While some are angered by the influx of
foreigners and increased social constrictions, Singapore has benefitted from a
stable economy and an honest government. and experts forecast continued
development and prosperity. Now, more than ever, is the prime time to immerse
oneself in the heat of Southeast Asia; that is, if its economic benefits
outweigh your right to chew gum.

Jacobson, Mark. The Singapore solution: how did a sleepy little island transform into a high-tech powerhouse in
one generation? It was all in the plan. National Geograpic Jan. 2010:
132+. Acadmic OneFile. Web. 16 Nov. 2010.